CONTACT: Jason Lobo
Phone: 703.652.1660
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Reston, Virginia, December 19, 2012— MERSCORP Holdings, Inc. today announced that Justice William J. Giacomo of the New York State Supreme Court, Westchester County, recently ruled that BAC Home Loans Servicing, LP (BAC) had standing to foreclose as an assignee of a MERS mortgage and as the holder of the note.

In pdf BAC Home Loans Servicing, LP v. Martinez (233 KB) , the borrowers sought the dismissal of a foreclosure complaint filed by BAC on the grounds that it did not have standing to foreclose. The borrowers cited the pdf Bank of New York v Silverberg (2.52 MB)  appellate court decision, arguing that MERS did not have the authority to assign their mortgage to BAC because MERS did not possess the underlying note.

Justice Giacomo found the borrowers’ reliance on Silverberg to be misplaced for two reasons. First, MERS as mortgagee has the authority to assign its interest in the mortgage and the Silverberg decision did not rule otherwise. Second, the court in Silverberg found no evidence that the foreclosing plaintiff possessed the note prior to the commencement of foreclosure, while here in this case, the evidence showed that the note was delivered to BAC prior to the commencement of the foreclosure action.

Accordingly, Justice Giacomo found no merit to the borrowers’ claims that BAC did not have standing to foreclose because, as Justice Giacomo noted, MERS as mortgagee assigned the mortgage to BAC and the note was endorsed in blank and delivered to BAC making it both the mortgagee and note holder, which under New York law gives a party standing to foreclose.

“We are pleased with Justice Giacomo’s ruling, which corrects the borrowers’ misinterpretation of the Silverberg decision and recognizes MERS’ role as mortgagee with the authority to assign the mortgage,” MERSCORP Holdings Director of Communications, Jason Lobo, said.

For descriptions of cases and other materials pertaining to MERS’ business model and role in U.S. housing, please visit


MERSCORP Holdings, Inc. is a privately held corporation that owns and manages the MERS® System and all other MERS® products. It is a member-based organization made up of thousands of lenders, servicers, sub-servicers, investors and government institutions. Mortgage Electronic Registration Systems, Inc. (MERS) serves as the mortgagee in the land records for loans registered on the MERS® System, and is a nominee (or agent) for the owner of the promissory note. The MERS® System is a national electronic database that tracks changes in mortgage servicing and beneficial ownership interests in residential mortgage loans on behalf of its members.